Sweden’s business confidence barometer climbed to 104.3 in October 2025 from an upwardly revised 100.6 in the previous month. This marked the highest reading since July 2022, signaling a stronger-than-normal sentiment among businesses. The improvement was largely driven by optimism in the trade sector, while confidence in construction remained weak. Demand conditions (-27 vs -28) were broadly unchanged from the previous month and continued to lag the historical average in most sectors, though trade activity held close to normal levels. Despite reports of lower employment over the past three months (-5 vs -4), companies expect a slight increase in staffing ahead (3 vs 1). The share of firms facing labor shortages remained stable and below the long-term average. Meanwhile, sales prices rose more than normal recently, and expectations for further price increases (14 vs 13) remain elevated across most sectors.